Sarraf is hopeful that the policy would help the company monetize huge quantity of oil and gas.

In an interview to CNBC-TV18, Saraf says ONGC is targeting a daily production of 17 million cubic metres of gas and 75,000 barrels of oil in three to three-and-a-half years.

He feels the 20 percent ad valorem oil cess announced in the Budget is too steep and that ONGC has taken up the issue with the government.

He says ONGC is scouting for overseas assets, but weak crude prices has made the task more challenging than before.

Below is the transcript of Dinesh Saraf's interview with CNBC-TV18 Farah Bookwala Vhora.

Q: What are your thoughts on the new Hydrocarbon Exploration Licensing Policy (HELP)?

A: I said it is a golden for the industry and I reiterate it. Government has announced that in difficult areas which mean deep water, ultra deep water, high pressure and high temperature of gas discoveries there would be pricing freedom, there would be marketing freedom to the industry operators which is excellent.

We hope that under this policy we would be able to monetise huge quantity of gas and oil and we would be able to reach new production of 17 million cubic meter of gas per day along with more than 75000 barrels of oil per day, that is our estimate. We should be able to do that within 3-3.5 years from now.

We would also be able to take the investment decision in this respect in next one months time.

Q: How do you see the impact of the 20 percent ad volrem cess on ONGCs costs and ultimately on your balance sheet as well?

A: This is little higher than our expectations and we have already taken up with the government. We are very sure that government would listen to us.